The Philadelphia School Reform Commission moved Wednesday to borrow $300 million - money it needs just to pay teachers, heat buildings, and buy books for the rest of the school year.

Chairman Pedro Ramos made it clear that the SRC's back was to the wall and that the state of its finances constituted "dire circumstances" for the district.

"I couldn't be more unhappy that we're in a situation where it's necessary to do a borrowing for the purposes of merely paying our bills," Ramos said.

The bond sale the SRC unanimously authorized at the Wednesday special meeting comes with a hefty price tag - an additional $22 million in debt service annually for 20 years, beginning in 2014.

It's the second time in a decade the district has had to borrow money to keep schools open - the last deficit financing occurred in 2002 - and officials say the school system's credit card is maxed out.

...

Existing salary and benefit structures were agreed to "in high-revenue times," said Hite. "Now we don't have the ability to sustain that structure."

1) Why wait until the end of the year?
2) Why borrow at all? Make cuts now!
3) Why spend $100M in interest to simply postpone by a year having to fire teachers and reduce benefits?
4) Do they really think they can afford current ops + $20M in additional interest a year or is this simply a scheme to intentionally default and expect the state to pick up the tab?

Well have no fear - Bob Brady is going to put a Casino in on the old Food Distro site on Packer Ave, along with a hotel and theater venue. All the revenue to go for the Philly Schools after it gets washed through his, the Philly Schools, and Mayor Nutter’s pockets!

8
posted on 11/09/2012 8:57:32 AM PST
by brityank
(The more I learn about the Constitution, the more I realise this Government is UNconstitutional !!)

The kids can’t read in Philly - why bother with the illusion of ‘teaching’. Offer the so called teachers 75% of their paychecks for life and let them sit at home. We’d save that much on school upkeep. It’s time to quit pretending. No one needs a degree to collect Social Security Disability.

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